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Key Takeaways
In November 2024, the on-time payment rate in independently operated rental units held flat at 85.5%.
On-time payment rates have remained within a narrow range of 85.3% to 85.7% over the past five months.
The forecast full-payment rate fell by 110 bps to 94.6% in November.
The ten (10) States with the highest on-time payment rates are all located in the West, led by Alaska, Nevada, Utah, Colorado, and New Mexico.
2-4-family rental properties and single-family rentals held the highest on-time payment rates in November, coming in at 85.7%.
National Overview
On-time rental payments in units operated by independent landlords effectively held flat in November 2024, sliding by a de minimis three (3) basis points (bps) and remaining at a rounded 85.5%. On-time collections are down by 70 bps from a year earlier. Moreover, compared to the post-pandemic peak of 88.2% set in April 2023, on-time payments are down by 279 bps, reflecting some sustained performance deterioration. Still, there are signs that on-time collections are stabilizing. On-time payment rates have proven remarkably consistent for the past five months of data, holding between a low of 85.3% and a high of 85.7%.
Note: As of May 2024, monthly data estimates are reported as a three-month moving average.
Beyond the on-time payment rate, other data points offer mixed signals. November’s forecast full-payment rate, which includes on-time payments, late payments, and expected late payments based on historical trends, fell to 94.6% — a meaningful 110 bps drop off from October’s 95.7%. However, compared to two months prior, the full-collection forecast is down by a more palatable 36 bps — signaling that October’s rapid improvement was an unsustainable outlier.
Trends within key rental subsectors reveal a slight performance gradient. Of the three tracked property sub-types, properties with 2-4 rental units and single-family rentals (SFR) led the way in November 2024, with the two subsectors holding an on-time payment rate of 85.7%, respectively. Meanwhile, average on-time payment rates in multifamily properties sat slightly lower at 85.1%. Notably, 2–4-unit rental properties saw on-time collections improve in November (+2 bps), while SFR (-2 bps) and multifamily (-17 bps) both saw mild declines.
Measured by State, western-located properties continue to outperform the rest of the country. On-time payment rates stand highest in November 2024 in Alaska (93.7%) — followed by Nevada (91.9%), Utah (91.4%), Colorado (91.4%) and New Mexico (91.1%). It is not until the No. 11 spot on the list that a non-Western state (Wisconsin, 88.6%) appears. The first east coast State, New Hampshire (88.6%), appears shortly thereafter at twelfth on the leaderboard.
Data Findings: By Property Type
Data Findings: By State
About This Report
The Independent Landlord Rental Performance report is a real-time look at how well non-institutional operators are collecting owed monthly rental payments. Utilizing data provided by property management software RentRedi, these findings have a reduced sample size of 97,863 units, which are analyzed and reported by Chandan Economics. Where sample size quality meets sufficient reporting standards, data are offered from March 2020 forward, and new trends and analyses are reported monthly. Performance trends are discussed nationally, as well as along the lines of residential property type and geography.
Data contained within this report offer investors, brokers, academic researchers, and policymakers a benchmark to track the performance and health of independent landlords.
About: Chandan Economics
Chandan Economics is an economic advisory and data science firm serving the commercial real estate industry. The firm's primary businesses include real estate data science (REDS), economic & market research, and litigation consulting.
About: RentRedi
RentRedi offers an award-winning, comprehensive property management platform that simplifies the renting process for landlords and renters by automating and streamlining processes. For landlords, RentRedi provides all-in-one web and mobile apps to collect rent, list and market vacancies, find and screen tenants, sign leases, and manage maintenance and accounting. For tenants, RentRedi’s easy-to-use mobile app allows them to pay rent, set up auto-pay, build credit by reporting rent payments to major credit agencies, prequalify and sign leases, and submit maintenance requests.Founded in 2016, RentRedi is VC-backed and a proven leader in the PropTech market. The company ranks No. 180 on the 2024 Inc. 5000 list, No. 12 on the Inc. 5000 Regionals list, and was named an Inc. Power Partner, a GetApp Category Leader, a Capterra Established Player, and a G2 High Performer and Momentum Leader based on the software’s user ratings and popularity. To date, RentRedi has more than $35 billion in assets under management with nearly 200,000 landlords and tenants using the platform. The company partners with technology leaders such as Zillow, TransUnion, Experian, Equifax, Realtor.com, Plaid, and Stripe to create the best customer experience possible. For more information visit RentRedi.com.
Methodology
Data are reported on a forward basis from March 2020 through November 2024 (current reporting period). As of the latest month of data availability, the reduced unit sample size totals 97,863. Rent charges are measured on a 15th-to-15th-of-the-month basis. Rent charges that are issued after the 15th of the current month are treated as a rent charge for the following rent-tracking period. (E.g., a rent charge sent on November 16th would be treated as a charge corresponding to December's owed rental payment.) Monthly estimates are represented as a three-month moving average.
Only charges designated as "rental income" are included for analysis. Rent charges below $500 and above $10,000 are excluded from this analysis.
Units that have not paid any form of rental income (full or partial) in the previous 60 days at the time a new rental charge is issued are removed from the sample tracking sample. Unpaid units refer to all units that have yet to fully satisfy their owed rents for a collection period. These unpaid units include units that have only partially paid their rent. As a means of reporting standardization, units with more than one monthly rent charge (E.g., rent paid weekly) are removed from the rent tracking sample.
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